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Recent developments of social security contributions and minimum wages in the euro area

Author

Listed:
  • Dreher, Ferdinand
  • Kouvavas, Omiros
  • Koester, Gerrit

Abstract

The box assesses recent developments in social security contributions and minimum wages. It finds that social security contributions have led to a moderation of growth in composition of employee growth, while growth in wages and salaries per employee – excluding employers’ social security contributions – has remained quite robust. Over the last decade minimum wages have affected wage growth substantially in some countries, but only marginally in the euro area. JEL Classification: J30, J38, E24

Suggested Citation

  • Dreher, Ferdinand & Kouvavas, Omiros & Koester, Gerrit, 2019. "Recent developments of social security contributions and minimum wages in the euro area," Economic Bulletin Boxes, European Central Bank, vol. 8.
    • Handle: RePEc:ecb:ecbbox:2019:0008:5
    Note: 3015628
    as

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    File URL: https://www.ecb.europa.eu//pub/economic-bulletin/focus/2019/html/ecb.ebbox201908_05~f276d9b6ff.en.html
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    More about this item

    Keywords

    Minimum wages; Social security contributions; Wage growth;
    All these keywords.

    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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